UK Residential Property Market Update Report

The Greater Bay Area (GBA) is a key strategic region in China’s national development blueprint, Price growth slowed in May and buyer demand in the residential property market softened, as the impact of pandemic-inspired trends such as the ‘race for space’ continued to fade. Nationwide said the average cost of a home increased by 11.2% on an annual basis in May, compared to 12.1% in April. Halifax put the annual rate of house price growth at 10.5% compared with 10.8% a month earlier.

The Greater Bay Area (GBA) is a key strategic region in China’s national development blueprint, whose aim is to build a globally competitive metropolis by 2035 by connecting the two SARs of Hong Kong and Macau and Guangdong’s nine municipalities. Since the GBA concept was unveiled, the GBA region has undergone rapid development, particularly in infrastructure and transportation network enhancement, which has substantially facilitated the free flow of people, logistics and business activity. Meanwhile, Hong Kong’s strategic positioning as a super connector that bridges the Chinese mainland and global markets has been strengthened in recent years, especially through capital flows improvement and deepening financial cooperation between the Chinese mainland, Hong Kong and Macau. This paper discusses the potential Chinese mainland businesses to enter the Hong Kong market due to the GBA development, and identifies three emerging office hubs in Kowloon – (1) Kai Tak Development Node, (2) Cheung Sha Wan - Lai Chi Kok and (3) CBD1.5-XRL Station – that have great potential to reap the benefits brought by the development of the GBA. Knight Frank Wealth offers the full GBA Insight from our complimentary report download to all KFP members